Gold Prices Soar Above $4,075 as Fed Keeps Rates Steady

The US gold price surged above $4,075 per troy ounce on Thursday after the Federal Reserve kept interest rates unchanged. The weaker US dollar and renewed geopolitical tensions in the Middle East increased demand for safe-haven assets.

According to Reuters, spot gold rose by about 0.3% to $4,076.52 per ounce, while US gold futures for August delivery climbed 1% to $4,074.30 per ounce. The gains came after the Federal Reserve maintained its benchmark interest rate at 3.50%-3.75%, and the US dollar index slipped by about 0.2%, making dollar-denominated gold cheaper for overseas buyers.

Analysts pointed to heightened geopolitical tensions in the Middle East, including recent US military action against Iranian targets, which boosted safe-haven demand for precious metals. Markets have also lowered expectations of a September interest-rate hike, providing additional support to bullion prices.